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A one time shock in the money stock of a country will have no long-run impact on the nominal interest rate of that country. True False The main difference between the monetary and asset approaches to exchange rates can be summed up in the idea that the nominal interest rate are allowed to temporarily change. O True False In traditional monetary theory, the nominal exchange rate is equal to what components? The Spot Exchange Rate Monetary Velocity Real Interest Rate Inflation Expectations A one time shock in the money stock of a country will have no long-run impact on the nominal interest rate of that country. True False The main difference between the monetary and asset approaches to exchange rates can be summed up in the idea that the nominal interest rate are allowed to temporarily change. O True False In traditional monetary theory, the nominal exchange rate is equal to what components? The Spot Exchange Rate Monetary Velocity Real Interest Rate Inflation Expectations
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1 False 2 False 3 In traditional monetary theory the nominal exchange rate is equal to the spot exch... View the full answer
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